MACRO GLOSSARY

What is Basis Points?

A unit equal to one-hundredth of a percentage point (0.01%). Used to describe interest rate changes: a 25-basis-point cut equals a 0.25% reduction. Abbreviated "bps".

Related Terms

Interest Rates
Macro
Central Bank
Macro
Monetary Policy
Macro
Bond Yield
Macro
Inflation
Macro
CPI (Consumer Price Index)
Macro
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